Tinubu’s $2.2bn Fresh Loan: APC, Opposition Reps Set For Showdown Tuesday

A showdown is expected in the House of Representatives this week over President Bola Tinubu’s request for a $2.2 billion (N1.77 trillion) external loan to address a substantial deficit in the 2024 budget.

The Senate has already approved the loan, with the House set to deliberate on it ahead of its expected approval.

Deputy Spokesman of the House, Philip Agbese, has expressed confidence that the loan request will pass smoothly in the Green Chamber.

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He emphasized that the loan would be used exclusively for capital projects, aligning with the President’s strategy to address Nigeria’s infrastructure deficit.

“The Tinubu-led government has been prudent with our resources, and we will approve the loan request without hesitation,” Agbese stated, assuring that the relevant committees have already begun scrutinizing the details.

However, the opposition caucus has raised concerns over the country’s growing debt burden, currently at N136 trillion.

The leader of the Minority Caucus, Kingsley Chinda, cautioned that borrowing should be a last resort, urging the government to demonstrate the necessity of the loan.

“Borrowing should not be the first option, particularly when it involves interest payments,” Chinda remarked, emphasizing the importance of transparency regarding the loan’s usage and repayment plans.

Some APC lawmakers, like Chike Okafor, argue that borrowing for infrastructure investment is essential for stimulating the economy, noting that past underinvestment in key sectors like roads, health, and education has left Nigeria with significant deficits.

“If borrowing is necessary for critical projects, then it’s a step in the right direction,” Okafor stated.

Despite these differing views, opposition lawmakers like Afam Oghene from the Labour Party remain wary of the growing debt profile and the lack of transparency in fund allocation.

Oghene called for accountability, stressing that borrowing should be for productive investments rather than consumption.